“There’s been a whole lot of discussion surrounding the Wall Street Journal‘s initial story claiming that Apple cut its order of iPhone 5 components in half,” Yoni Heisler reports for Network World.
“Wall St. is absolutely smashing Apple, with the stock dropping down to sub-$500 levels not seen since last February,” Heisler reports. “And as one would expect, some analysts are now lowering their iPhone 5 sales estimates as well.”
Heisler reports, “But not everyone is buying into the sky is falling mentality as it pertains to iPhone 5 sales. One of the more interesting threads is that Apple’s iPhone 5 display orders were scaled back because yields are improving. So says JP Morgan analyst Mark Moskowitz… ‘In our view, the potential order cuts are a direct result of manufacturing yields improving following the fast-and-furious product roll-outs of the iPhone 5 as well as new iPads and Macs,’ Moskowitz explained in a note to investors.”
Read more in the full article here.
Analysts: iPhone 5 demand ‘robust;’ ignore the non-news noise – January 15, 2013
Apple iPhone suppliers decline on report orders cut by 50% – January 15, 2013
Apple swoon erases $17 billion from stock market – January 14, 2013
So, Apple has to pay for the defective ones, too? Defective ones are factored into the original order? (ie. I need 15 million so I’ll order 20 million because I know about 5 million are going to be jacked up)
Apple has done just this for many, many years. In fact, during one keynote address Steve Jobs remarked that they buy a LOT of computer screens and reject almost half of them with Steve commenting, “Where do those rejected screens go? Into our competitor’s systems.”
So Apple buys way more than they need then select what meets their criteria then sell the rejects at reduced prices.
I’m not sure they can sell off the relatively unique items like an iPhone 5 system’s screen, but if they can, I’m sure they do.
I checked yesterday and there still is a 1 week lead time on every iPad mini. I want to buy the high end for AT&T. What do you think Apple earns more on? Apple is selling the iPad line on Friday in China. China is going to be bigger than the USA as per Tim Cook’s statement.
Are the sellers of Apple stocks being played? YES!
The initial “report” about 65 million planned screens for March quarter is outright lie, so there is no point in making up excuses that would somehow validate this nonsense.
There is no way how yields would be so low before that Appla would have to order 65 million screens instead of 40 million it actually needs for March quarter. This is just more nonsense to the pile.
Two nonsenses still do not make sense.
“Sometime between Sunday at 8:00 p.m. EST and Monday at 7:00 a.m., the [Wall Street] Journal decided to drop the number from its article. But if the 65 million number is not right, is the estimate for halving March orders correct, either?” – Tero Kuittinen, BGR.
The WSJ doesn’t change a story unless someone had a kidney punched late at night in the editorial office.